Bloom Energy Is Riding the Data Center Boom to a $25 Billion Backlog. Plug Power Is Passing on It. Here's Why.

Two fuel cell companies, Bloom Energy (NYSE: BE) and Plug Power (NASDAQ: PLUG), are heading in different directions despite both targeting the AI-driven power opportunity. Bloom Energy has secured $25 billion in financing to capitalize on the data center boom, while Plug Power remains focused on its industrial hydrogen businesses.

Data center electricity demand is expected to surge, with AI data centers projected to consume 11.8% of total U.S. electricity by 2030. Bloom Energy's innovative Bloom Energy Server, which generates electricity directly from natural gas, biogas, or hydrogen through solid oxide fuel cells, is well-suited for data centers as it avoids the need for substations and transmission lines.

The company has gained approval from major U.S. hyperscalers and AI labs. Additionally, Brookfield Asset Management has increased its funding for Bloom Energy's AI-related power projects to $25 billion, providing the company with substantial third-party project financing. Wall Street has responded positively to Bloom Energy, with a consensus rating of "Moderate Buy" from 26 analysts, suggesting a potential upside of up to 35%.

In contrast, Plug Power's primary product focuses on material handling, electrolyzers, and hydrogen production, and it has not made a clear decision to enter the data center industry. Therefore, investors seeking exposure to the AI power boom may prefer Bloom Energy's growth trajectory over Plug Power's more niche approach.